The Government has announced that it will move to exempt pension payments from approved pension fund plans and approved deferred annuity plans from income tax, effective January 1st, 2026.

The announcement was made by Prime Minister Kamla Persad-Bissessar SC in the Lower House on Friday, in relation to a measure outlined in the 2026 Budget Statement by the Minister of Finance. She confirmed that this measure will be included in the upcoming Finance Bill.

“Under the proposed changes being introduced in the Finance Bill, 2026, income derived from pension fund plans and deferred annuity plans approved by the Board of Inland Revenue will be exempt from income tax. These are structured, regulated and contributory arrangements that individuals enter into over the course of their working lives. Importantly, Mister Speaker, the exemption will take effect on income earned on or after January 1st, 2026.”